Home / Knowledge / News / Cotton / Global cotton prices forecast to fall in 2019-20, 2020-21

Global cotton prices forecast to fall in 2019-20, 2020-21

04
Jan '20
Pic: Shutterstock
Pic: Shutterstock
Cotton prices will remain weak in the 2019-20 and 2020-21 seasons as supplies of cotton outstrip demand and surpluses grow, according to a report in issue 200 of ‘Textile Outlook International’ by global business information firm Textiles Intelligence. One factor affecting cotton price is weak demand caused by uncertainty arising from the US-China trade war.

Until relations between the two countries improve, demand for cotton will remain suppressed and so will the cotton price, unless there are major revisions to crop estimates or there are signs of greater strength in the global economy, the company said in a press release.

In fact, the average price of cotton has been falling since the beginning of 2018-19, and in 2019-20 it is forecast to fall further to only 76 US cents/lb, which would be 11 US cents/lb lower than the average for 2018-19.

The continued weakness in cotton prices has been reinforced by an increase in the size of the global stockpile that has reversed recent declines. Indeed, surpluses are growing in the main producing nations, and stock levels at the end of the 2019-20 season (July 31, 2020) are expected to be 1.3 per cent higher than they were at the beginning (August 1, 2019).

Global consumption of cotton is expected to rise in the 2019-20 season as Chinese demand stabilises. But there is also expected to be a rise in global cotton production during 2019-20 as yields in India rebound and plantings increase in the United States. As a result, global cotton production will exceed demand, stocks will rise and this will put downward pressure on the cotton price, the report said.

This pressure on prices will continue into 2020-21 as demand is forecast to remain weak while yields are expected to improve as a consequence of better weather conditions. In fact, the global cotton crop in 2020-21 is forecast to reach its second highest level ever.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Top executives, Machinery Company

Top executives
Machinery Company

We will promote latest technologies at ITMA Barcelona

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Madhu Sudhan Bhageria,

Madhu Sudhan Bhageria

Incorporated in August 1990, Filatex India Ltd manufactures manmade...

Rushiraj Mulani,

Rushiraj Mulani

The Shradhdha Group of companies was established in 2010 and is based out...

Marco Girola,

Marco Girola

With its commitment to innovation and deep technical expertise,...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search